GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monopoly
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Collusive oligopoly
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Non-Collusive oligopoly
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All of the above
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Detailed explanation-1: -Collusive oligopoly is a form of the market, in which there are few firms in the market and all of them decide to avoid competition through a formal agreement. They collude to form a cartel, and fix for themselves an output quota and a market price.
Detailed explanation-2: -3. Collusive Oligopoly: Collusive Oligopoly, also known as Cooperative Oligopoly, is a market where different firms cooperate with each other to determine the output or price, or both price and output of products.
Detailed explanation-3: -Legal collusion examples include firms agreeing not to undercut each others’ prices or outbid each other for employees. This saves money for the companies, but it doesn’t work out well for consumers or employees.